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Industry Taken By Surprise As Former itravel2000 Files Notice To Creditors

Open Jaw

26.08.16

Industry suppliers were left scrambling for answers yesterday after the news that the registered company 8635919 Canada Inc. (formerly known as itravel2000) had issued a proposal to file for bankruptcy protection with the Office of the Superintendent of Bankruptcy Canada.

One supplier told Open Jaw that the news raised questions about accepting bookings from itravel2000, simply because they had not been advised of the situation.

But Richard Smart, President & CEO of the Travel Industry Council of Ontario (TICO), says the newly registered iTravel2000.com is operating under the legal name 9831185 Canada Inc. and is registered with the industry regulator.

Smart has confirmed to Open Jaw that TICO is satisfied the registrant met all conditions for registration. “The prior entity that operated iTravel2000 terminated its registration with TICO and its shareholders can therefore proceed with any corporate filing deemed necessary.”

As Smart explains: “TICO does not get involved with non-registrants undergoing corporate restructurings.”

In a Notice of Intent filed with the Ontario Superior Court of Justice, the company identifies creditors with claims of $250 or more. It’s a short list, but the total comes to over $21 million, with Aldenham Canada Acquisition Corp. and Elleway Properties limited each owed over $10 million. Over $220,000 is listed with ‘employee’ as the creditor.

In response to an inquiry from Open Jaw, TravelBrands co-owner Frank DeMarinis wrote: “I confirm that Red Label Holdings Inc has completed the purchase of some of the assets of itravel2000, Including the names itravel2000.com and itravel2000.”

That purchase is still pending regulatory approval.

The bottom-line appears to be that Red Label will be able to use the itravel2000 brand and technology, without assuming any of the company’s debt.

Comments

Travel Nerd - August 31, 2016 @ 22:08Sounds like Red Tag has had their eye on the prize for quite some time. Feel badly for the agents who work hard to drive the business. They now have to go through another bankrupcy. More severance pkgs null and void. Perhaps spending less money on an plethora of contests/advertising since the previous bankrupcy for a company that has been operating since 1994 would have saved some money. Brand was already well established. Foolish spending Mr Prez.

Travel Consultant - August 29, 2016 @ 12:08VERY CONFUSING

JT - August 29, 2016 @ 11:08So Red Tag bought the name and not the debt! Fishy.

Harry Schneider - August 28, 2016 @ 12:08all this huge and tremendous advertising budget led to this now ?

Ross - August 26, 2016 @ 11:08In reading the short list of creditors I was interested to see Elleway Properties are in St.Helier NJ rather than just plain Jersey. I wonder what other little errors there might be?

Ron also - August 26, 2016 @ 09:08Where is Jonathan Carroll when you need him?

linda - August 26, 2016 @ 09:08Regulators should not allow redtag to become a monopoly, with the purchase of itravel2000, there will be no competition... who would approve that??

Ron - August 26, 2016 @ 08:08Why would Red Tag/Label want to use that tarnished name?..makes no sense...

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